July 3 , 2018
Overall pair was falling down from 1.4376 level to 1.3048 level continuously but after arriving at these level it seems like bears have become tired and bulls are knocking the door. However, bulls attempted earlier also but could not sustain and day before yesterday also we have witnessed their presence whole the day. If bears want to take it further downside then they need more energy and bearish momentum because with the current momentum it is next to impossible.
On the other side, in the daily chart we can see that the pair has shown buying interest but that was limited as pair is still hovering below the moving average lines. We can observe that after a steep downfall some profit booking was expected due to dollar weakness. Overall short term to intermediate term trend is down so in a downtrend market sell on high will be profitable strategy.
Bears are still taking the charge and the way bears are reacting it seems like they are still showing their presence in the pair and will dominate the bulls. A correction after a downfall is a healthy sign for trend formation. Traders are in confusion that is it a correction or trend has been changed? We will keep our bias as bearish on the pair as long as 1.3500 level remains intact as & odds are in favor of bears.
A twisted crossover on MACD indicator is unable to provide any signal for the time being and providing us neutral signal for the time being whereas RSI is providing us some bullish signal from oversold territory. . The 1.3450 level is immediate resistance level followed by 1.3550 whereas 1.3010 level is strong key support level followed by 1.2950 level.
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